LONDON / ADDIS ABABA/TALLINN: TerraPay, a global payments infrastructure company, and Cooperative Bank of Oromia today announced the launch of blockchain-based settlement for inward remittances to Ethiopia. The initiative supports euro-denominated remittance flows from Europe, combining TerraPay’s cross-border payments network, COOP Bank’s nationwide banking reach, and regulated digital euro settlement infrastructure provided by Quantoz Payments, strengthening efficiency, transparency, and reliability across the corridor.
Ethiopia is one of the largest remittance-receiving countries in Africa, with annual inbound flows exceeding USD 5 billion. The initiative comes at a time of significant reform in Ethiopia’s foreign exchange regime, which is expected to increase transparency and efficiency in cross-border financial flows.
The initiative was developed in collaboration with the Inclusive Financial Technology Foundation(INFTF), which works with central banks and financial institutions across emerging markets to advance inclusive settlement infrastructure. INFTF and TerraPay worked together with Ethiopian financial authorities to establish the regulatory and technical framework for blockchain-based inward remittance settlement.
At the core of the initiative is the use of the Xahau Blockchain as the settlement layer. Xahau is a blockchain designed for financial-grade use cases, incorporating account-level smart functionality and deterministic transaction execution. It is used strictly for settlement and operates alongside the existing compliance, licensing, and operational frameworks of the participating institutions.
“Ethiopia’s diaspora sends billions of dollars home each year, and the families who depend on those flows deserve infrastructure that is fast, transparent, and reliable,” said Ambar Sur, Founder and CEO of TerraPay. “By combining regulated blockchain settlement with Cooperative Bank of Oromia’s domestic reach, we are delivering exactly that and establishing a model that can be extended to other corridors where remittances are a lifeline.”
For Cooperative Bank of Oromia, the initiative extends the reach of inward remittances across Ethiopia’s domestic financial system, supporting households and communities nationwide while remaining aligned with local banking and regulatory requirements, in line with the Bank’s purpose of empowering communities and transforming lives.
“For Ethiopia, inward remittances are vital to households and to the wider economy,” said Deribe Asfaw, President and CEO of Cooperative Bank of Oromia. “Our collaboration with TerraPay enables Coopbank, as a leading digital bank, to deliver secure, fast, and fully compliant remittance service across the country. By leveraging modern settlement infrastructure, we continue to expand access to reliable financial solutions while remaining fully aligned with Ethiopia’s financial sector framework.”
Quantoz enables euro settlement to be handled by bridging blockchain settlement rails with regulated digital money instruments, providing a transparent and auditable settlement mechanism that meets the requirements of European financial regulation.
“Regulated digital euro instruments are a natural fit for compliant cross-border settlement,” said Arnoud Star Busmann, Chief Executive Officer of Quantoz. “Supporting euro settlement for this corridor demonstrates how regulated digital money can integrate into real-world remittance flows with full transparency and accountability, whilst eliminating expensive pre-funding positions.”
The initiative is supported by the Inclusive Financial Technology Foundation, which has contributed to aligning the programme with inclusive finance and national development objectives.
“This launch represents an important first step in a broader effort to modernize cross-border settlement in support of national development goals,” said Bharath Chari, Board Member at INFTF. “By aligning regulated institutions with financial-grade blockchain infrastructure, this initiative establishes a foundation for future corridors and expanded inclusion.”
About TerraPay
TerraPay simplifies global money movement, providing a single connection to one of the most expansive cross-border payment networks, regulated across multiple markets. Its network enables payments to receiving and sending countries worldwide, reaching a vast network of mobile wallets, bank accounts, and cards. TerraPay connects 7.5Bn+ bank accounts in 156+ countries and operates Xend, an interoperability network enabling secure, real-time cross-border payments to and from 3.7B wallets through a single connection. TerraPay is headquartered in London with offices globally.
About Cooperative Bank of Oromia
Cooperative Bank of Oromia is one of Ethiopia’s largest private commercial banks, with over 700 branches nationwide serving millions of customers. The bank provides a full range of retail, corporate, and digital banking services and plays a significant role in supporting financial inclusion, domestic economic activity, and cross-border remittance services across Ethiopia.
About Quantoz Payments
Quantoz Payments is a regulated issuer of digital money instruments, including euro-denominated digital settlement solutions designed for use in regulated financial markets. Operating under European regulatory frameworks, Quantoz focuses on compliant, transparent, and auditable digital money infrastructure for payments and settlement use cases.
About Inclusive Financial Technology Foundation (INFTF)
The Inclusive Financial Technology Foundation is an Estonia-based not-for-profit organisation dedicated to advancing inclusive financial technology aligned with national development objectives. INFTF works with central banks, regulators, and financial institutions to demonstrate the viability of modern settlement infrastructure in regulated environments and facilitates partnerships between technology providers and domestic financial institutions.